Hexaware Tech to focus on high-end work in expansion of BPO practice

Mid-size IT solutions company Hexaware Technologies is set to expand its nascent back-office practice under new Chief Executive Officer R Srikrishna.

However, the company will not focus on traditional business process outsourcing engagements but on high-end work that calls for specialised skill sets such as data analytics.

“In my book, BPO is high on the priority list. However, we will focus more on knowledge process outsourcing work as that is where most of the value creation happens,” Srikrishna told Business Line.

For the quarter ended June 30, revenue from back-office services accounted for just 4.1 per cent of Hexaware’s revenue of ₹589 crore. During the same period, the company had reported a 21.8 per cent fall in net profit to ₹76.6 crore.

Hexaware’s play in the back-office space is largely driven by its wholly-owned subsidiary Caliber Point, which provides services for the healthcare, insurance and financial services industries.

The focus on BPO, coupled with initiatives to leverage the entire ‘digital’ opportunity and strengthening of the infrastructure management practice, seem to be the new direction for the $400-million company.

“We will evaluate all areas and take decisions in the next 60 days about where we need to maximise our investments. Digital presents a level playing field for all companies and there are no tier-I companies in this space,” said Srikrishna.

Across the board demand for digital services — a potent combination of social, big data and analytics, mobility and cloud — is increasing as banks, retailers and even manufacturing companies start doing a lot more with them.

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